UNIVERSITY OF MICHIGAN ANNUAL REPORT YEAR ENDING … · to graduate-student consultants in...
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UNIVERSITY OF MICHIGAN ANNUAL REPORT YEAR ENDING JUNE 30, 2002
Transcript of UNIVERSITY OF MICHIGAN ANNUAL REPORT YEAR ENDING … · to graduate-student consultants in...
UNIVERSITY OF MICHIGAN
ANNUAL REPORT
YEAR ENDING
JUNE 30, 2002
CONTENTS
About Tech Transfer . . . . . . . . . . . . . .2
Fiscal Year 2002 Results . . . . . . . . . . .4
2002 Invention Disclosures . . . . . . . . .6
Connections to the Market . . . . . . . . .8
Community Partnerships . . . . . . . . . .16
Future Directions . . . . . . . . . . . . . . .18
1
I’m pleased to provide you with this update on our progress in technology transfer
at the University of Michigan. We are pleased with our results in commercializing
university discoveries for the public good. We attribute this success to excellent
technology, the wealth of talent within the University research community, and
the diligence and dedication of our staff members and industry partners.
Efforts to encourage wider faculty participation in tech transfer yielded significant results.
With leadership from our Medical School and College of Engineering satellite offices, we achieved a
30 percent increase in invention disclosures from faculty over last year. Our revenues, which did not
include any equity sales from our portfolio, totaled $5.7 million, a 46 percent increase over the previous
year’s royalties. Most importantly, we significantly improved our services to researchers and business
partners: initiating new protocols for early assessment of technology opportunities, guiding researchers
in their choice of commercialization options, and connecting with outside resources to accelerate
business start-ups and licensing technology.
But this is only part of the story.
During the past year, we also focused on ways to strengthen our capabilities in technology transfer.
In FY02 we completed our Tech Transfer Strategic Plan, developed in conjunction with University lead-
ership. This process produced a consensus on our core mission, objectives and success metrics, along
with a focused plan to accelerate our progress.
We also worked hard to expand our business networks by cultivating deeper and broader relation-
ships with outside partners, including venture capital firms, entrepreneurs,
consultants, and leading corporations. We continued to enhance our New
Business Development team, which provides assistance to start-up companies
that license UM technology. And for the third year, our TechStart intern
program connected talented graduate students to our technology projects,
yielding valuable expertise for us and a rewarding educational experience for
the students.
All of us who make up the Tech Transfer team are proud and some-
what in awe of the scope and quality of research underway at this remarkable
institution. We are grateful to have a role in furthering the mission of the
University by helping to transform academic innovation and discovery
into products, services and enterprises that benefit society.
We look forward to the year ahead with optimism and a renewed
commitment to those we serve.
Kenneth Nisbet
Executive Director, UM Tech Transfer
University of Michigan
From the
Executive Director Ken Nisbet, withDirectors Elaine Brock, Robin Rasor, and Tim Faley
Executive Director
The University of Michigan’s continued pursuit of excellence in research
inevitably leads to discoveries of great value to society — discoveries that
address a broad range of problems and needs. Since 1983, when our first
technology transfer office was established, hundreds of inventions and
research findings have made their way to waiting and eager markets in the
form of new products, services and business ventures. In the last five years,
the University of Michigan completed 267 license and option agreements
and launched 34 start-up companies.
FULL-SPECTRUM SUPPORT
Our goal is to provide faculty researchers with expertise and guidance
throughout the entire technology transfer process—from initial consulta-
tions, assessments and disclosures to full-blown commercialization plans,
patent protection, development of prototypes and, when needed, additional
funding. Through our TechStart student intern program, we provide access
to graduate-student consultants in business, engineering, law, medicine, and
education. And to facilitate start-ups, our New Business Development
team works actively to build relationships with investors and other
commercial partners.
About
“The University of Michigan continues to work diligently to be among the top institutions in the
country relative to technology transfer. This year,the State of Michigan and Governor Engler
honored UM's outstanding work by awarding itsOffice of Technology Transfer an award
for Exemplary Success in CommercializingTechnology and Promoting Entrepreneurship.
This prestigious award recognizes the contributions that the University of Michigan has
made to the economic vitality of the entire state.”
— Doug Rothwell, President and CEO, Michigan Economic Development Corporation
TechTransfer
3
FAR-REACHING IMPACT
UM Tech Transfer supports and furthers the University’s mission by:
◗ Increasing the likelihood that new discoveries and innovations will lead to useful
products, processes and services that benefit society.
◗ Facilitating new research collaborations and resource exchanges with industry, thereby
providing unique opportunities for faculty and students.
◗ Increasing the flow of research dollars and resources to the academic community.
◗ Providing incentives for faculty to deepen and broaden the scope of their research.
◗ Helping to attract and retain highly qualified faculty and graduate students.
◗ Enriching the educational experience through student internships and work-study
opportunities.
◗ Leveraging business partnerships to stimulate local and regional economic development.
◗ Enhancing the reputation and stature of the University.
THE MISSION of UM Tech Transfer is to effectively transfer University
technologies to the market so as to generate benefits for the University, the
community, and the general public.
Components of theTechnology Transfer Process
Research
Invention
Pre-Disclosure
Disclosure
Evaluation
Patent/Copyright Protection
Marketing
Business Development
Licensing
Commercialization
Revenue
“Our goal is to be among thenation's top five universities in
the realm of technology transfer.This objective, which is well
within our grasp, reflects the powerful creativity
and high prestige of theUniversity of Michigan
research community and thededication and talent of our
tech transfer team.”
—Fawwaz T. UlabyVice President for Research
University of Michigan
➥➥
➥➥
➥➥
➥➥
➥➥
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Amotivated and highly responsive team,
well-organized satellite offices, and a
firm strategic focus, all helped produce a
year of solid results despite nationwide
economic difficulties. In fiscal year 2002,
disclosures were up significantly, indicating
more interest and awareness on the part of
UM faculty. In addition, concerted efforts at
relationship-building with entrepreneurs,
venture capitalists and other key players
resulted in sixty-one license agreements and
five new start-up companies. These
outcomes demonstrate the University’s
increasing effectiveness at moving new
technology into the mainstream.
Amotivated and highly responsive team,
well-organized satellite offices, and a
firm strategic focus, all helped produce a
year of solid results despite nationwide
economic difficulties. In fiscal year 2002,
disclosures were up significantly, indicating
more interest and awareness on the part of
UM faculty. In addition, concerted efforts at
relationship-building with entrepreneurs,
venture capitalists and other key players
resulted in sixty-one license agreements and
five new start-up companies. These
outcomes demonstrate the University’s
increasing effectiveness at moving new
technology into the mainstream.
2002RESULTSFISCAL
YEAR
5
ENGINEERINGBiomedical Engineering 10 9%Chemical Engineering 6 5%Elec. Engin. & Comp. Sci. 58 50%Indust. Operations Engin. 3 3%Material Sciences 4 3%Mechanical Engineering 21 18%Nuclear Engineering 5 4%Miscellaneous 10 9%Total 117 100%
MEDICALAnesthesiology 3 2%Biological Chemistry 7 5%Human Genetics 4 3%Internal Medicine 30 22%Mental Health 6 4%Microbiology 3 2%Opthalmology 4 3%Otolaryngology 7 5%Pathology 16 12%Pediatrics 7 5%Pharmacology 7 5%Psychiatry 4 3%Radiation Oncology 4 3%Radiology 5 4%Surgery 10 7%Miscellaneous 18 13%Total 135 100%
OTHERDentistry 7 15%Lit/Sci/Arts 17 37%Pharmacy 6 13%Public Health 6 13%Miscellaneous 10 22%Total 46 100%
2002 INVENTIONDISCLOSURES
INVENTIONDISCLOSURES
0 50 100 150 200 250
0 10 20 30 40 50 60 70
0 2 4 6 8 10
1997
1998
1999
2000
2001
2002
1997
1998
1999
2000
2001
2002
1997
1998
1999
2000
2001
2002
174
169
158
168
182
237
39
38
39
48
52
56
1.8
3.5
2.5
3
3.9
5.7
45
45
41
56
64
61
1
1
4.3
LICENSE AGREEMENTS
To Start-up Companies
To Established Companies
LICENSE REVENUE (in millions of dollars)
From Equity
From Royalties
Welcome Start-up Class of 2002:
DermaCoEprogenVelcura
ThromgenQuantum Signal
3.3
“Our efforts at encouraging facultyparticipation in tech transfer were
very successful in FY02, as can be seen in our record number of disclosures. We also worked to
streamline our processes with the goal of becoming even
more responsive to faculty and third parties interested in
UM technology.”—Robin Rasor
Director of Licensing,Office of Technology Transfer,
University of Michigan
Disclosures with inventors from multiple colleges are credited to each college.
Fiscal Year July ’01–June ’02
Field Tunable Probe for Combined Electricand Magnetic Field Measurements
Detachable Snap Fits for Space FrameAutomotive Body Structures
Method of Forming Nanofluidic Channels
Polymer Micro-ring Resonator Devices
Ultra Precise Reconfigurable InspectionMachine
Palm Artifact Manager (PAM)
Combustion Systems ofNanparticles Using a Multi-elementDiffusion Burner
Modulation Optimized SpectrumTechnology (MOST)
MASSIT Spike Sorter
Purification of Water
MEMS Micropump
A Wide Range Supply IndependentCMOS Voltage Reference
Micro Gas Chromatograph
Cochlear Prosthesis Actuated Insertion Tool for Local and Differential Shape Control
Transition-aware GlobalSignaling
Active Shielding of On-chipGlobal Intercoreaction
Smart Bandage
Rapid Nano Patterning of Multiple Materials on a Substrate
High Performance Nonplanar Inductors
Reversal Imprint Technique
Integrated Surface and Depth Measuring Methods
Strain-hardening CementitiousComposites
Radiation-hard Temperature-resistantNeutron Detector
A Three Dimensional Mammalian FibroidConstruct for Clinical Screening andResearch
Porous Materials with High Surface Area
Moisture Indicator for Restorative Dentistry
Controls of Mechanical Propertiesand Degradation Behavior ofAlginate Hydrogels
Target Energy Loss Compensationfor Kinematically-collimated NeutronBeams
Dual-rail StaticPulse Clocked Flip-flop
A Device for Measuring and TeachingFly Casting
Ballast Free Ship
Stiffness-compensated Temperature-insensitive Mechanical Resonators
Collimated Radiation Detector and Array of Collimated Detectors
Defeating TCP/IP Stack Fingerprinting
Method and Apparatus for Non-contactMeasurement of Melt Flow Velocity inLaser Materials Processing
Selective Sorbents for Desulfurization of Liquid Fuels
Method and System forEngineered BiologicalImplants
Circuit Simulator forQuantum and ResonantTunneling Devices
Ultrahigh Activity Catalysts for Low-temperature Selected CatalyticOxidation of Ammonia to Nitrogen
Error Correction Method for theDisplacement Detector Array of a Past Measurement
Furnace With Increased EnergyEfficiency and Reduced PollutantFormation
Symbolic Structure RepresentationAlgorithm of Human Motion
Fabrication of Out-of-plane Curved Surfaces
A Method to Apply Constraint-basedHeuristics in CollaborativeDesign
Integrated Printed CircuitBoard Flow Channel
High Speed Drilling Machine
On-wafer Packaging for RFMEMS
Method for Statistical Reconstruction of X-ray Computed Tomography Images
Region Prefetching Engine
Photo-generated Reagents and TheirReactions
The Store-load Address Table and ItsApplication to Compiler Optimization
Self-feeding Breadcrumb Trail for Dead-reckoning on Rugged Terrain
Laser-driven Radioactive Flechettes
Enhanced Isotope Enrichment
Fabrication of Thick Silicon Dioxide Layers
Combined Radiation Detector for NeutronDetection and Discrimination
Low-cost Satellite Imaging System
Inductive Biomineral Scaffold for TissueRegeneration
MEMS-based Voltage Controlled Oscillator
Porous Plug Electro-osmotic Pump
Large Displacement Compliant Joints
Multi-lead MicroconnectionDevice
Low-voltage and Low-powerAnalog Circuits
Formulation of a Two-component Polymer for Deliveryand Endovascular Occlusion of Blood Vessels
Integrated Electro-thermal Probe
Reconfigurable Slot Antenna for VHF/UHFApplications
Low-power Flip-flop with EnergyRecovery and Automatic Clock Gating
Highly Efficient Miniaturized SlotAntenna
High Performance MEMS-based On-chip Clock Generation
Continuous-WaveUltraviolet Laser
Method to FabricateSingle-crystal Tubes
Vacuum EncapsulationTechnique
Microfluidic Device for Separating Motile and Non-motile Particles
A Sensitive and Selective PeptideSequence for Arsenic (III) Ion Detection in Water
Light Directed Spatial Generation of Acidsand Bases from Precursor Moleculesin Solution
A Reconfigurable Multispindle Head
Field-assisted Bonding of Insulator to Eutectic Solder
Acoustic Tweezers
Bent-beam Actuated SteerableMicroplatform
In-process Sensing and Quality Control of Zinc-coated Steel Welds
Single Phase Resonant Clock Generator for Energy Recovering Systems
Low-power SRAM with Energy Recovery
Technique for Reduced-tag DynamicScheduling
Resonant-cavity Magnetic FieldProbe for Millimeter WaveFrequency Domain Spatial FieldMapping
UM
TECH
TRANSFER
Disclos
7
A Method for the Production ofOrthorhombic Acetaminophen
Pulsed Carrier Gas FlowModulation for SelectivityEnhancements with GasChromatography
High Capacity Methane Sorbents
Nitric Oxide Releasing Acrylic Polymers
Stretch Pivot Coordinates forRepresenting Human Posture
Molecular Targets for Chemotherapy
High Temperature Chemical Crosslinkers
Noninvasive Nonlinear Method forSeizure Prediction
Expression Profile of Prostate Cancer
Multiorgan Gene Expression Profiles of Systemic Inflammation/Sepsis
Novel Methods of Diagnosisof Angiogenesis
Software for KinematicAssessment of the Shoulder
Transgenic Mouse Model of ElevatedFactor IX Causing Myocardial Fibrosis
Targeting and Delivery of Nucleic Acidsto Intestinal Cells
Computer-aided Diagnosis (CAD)System for Detection of Lung Cancer
Method of Treating SystemicInflammatory Response Syndrome
Ultrasound Gating of Cardiac CT Scans
Dynamic Foot Orthosis
Novel Kinases: Sequence andFunction
Device for Dentomaxillofacial X-rayComputed Tomography
Mouse-model of Hereditary SpasticParaplegia
Human Gene Expression Cassettes forEffective Intracellular Delivery of SmallInterfering RNA
A Noninvasive Assay for Quantitation of BACE Activity
A Generalized Approach to In-situFormation of Metal-based Pharmaceutics
A Method for Extending theDynamic Range of Flat PanelDetectors
Instrumentation for Detectionand Imaging of FluorescenceResonance Energy Transfer
Prevention of Noise-induced Hearing Loss
Prevention of Cisplatin-inducedDeafness
Interventions to Protect and Regrow the Auditory Nerve
A Microcarrier System for Production of Recombinant Proteins
A New Polyclonal-based(ELISA) Assay for theDetection of Loxoceles Spider Venom
Markers for PancreaticCancer Diagnosis
Blood Hemolysis Analyzer
Prospective Identification andCharacterization of Breast Cancer Stem Cells
Small RNA Molecules for the Inhibitionof Gene Expression in Cells
Microarray Analysis of Gene Expressionin the Aging Human Retina
Mouse Eye Gene Microarrays forInvestigating Ocular Development and Disease
Histidine-rich Proteins as Targets forAntimalarial Therapy
Genes Preferentially or ExclusivelyExpressed in Cerebral Cortex orCerebellum
Quantitative Immuno-Cyto-Chemistry in Tumor Tissues
Methods for the Production ofGenetically Modified Animals
Method to Improve Factor VIII Secretion
Sabel Lymph Node Retractor
Agonists for Treatment and Prevention of Alzheimer’s Disease
Method of ModulatingInflammatory Response
Bimolecular FluorescenceComplementation Assay for the Analysis of ProteinInteractions
ATLAS Method,Amplification Typing of L1 Active Subfamilies
Mouse Model of RespiratoryDistress and PituitaryInsufficiency
Inhibitors of Bcl-2 and ItsRelated Proteins
Antagonist of Bcl-2 and Related Proteinsand Therapeutic Methods Based Thereon
Ablation Catheter for Treatment of AtrialFibrillation
Prevention of Acute Graft Versus HostDisease
Bronchial Blockers
3D Protein Separation
A Human Promoter that Directs PodocyteSpecific Transgene Expression
Detection of Quanylyl and Adenylyl CyclaseActivity
Diagnostic Biomarker in LungAdenocarcinoma
Dopamine Receptor Ligands andTherapeutic Methods Based Thereon
Enhancing Diabetic Wound Healing
Peptide Analogs as SelectiveInhibitors of Thrombin Activation
Image Archiving System
Methods of Preventingand Treating MicrobialInfections
AntimicrobialNanoemulsionCompositions and Methods
Methods to Inhibit or Enhance the Bindingof Viral DNA to Genomic Host DNA
Surface Transfection and ExpressionProcedure
Replication Deficient Adenovirus Vectorsand Methods for Making and Using Them
Packaging Technique for MicrofluidicElastomer Chips
Stabilization of TetanusToxoid Encapsulated inPLGA Microspheres
An ImmunoadsorptionDevice for the Treatmentof Immune
Thrombocytopenia Purpura (ITP)
A Universal Delivery System to AchieveIdeal Drug Therapy
Polymer Compositions that Elicit a Strongand Sustained AntibodyResponse
Magnetically ModulatedChemical Sensors forBackground Rejection
Inlet Adaptor for Low FlowrateVersion of the IOM PersonalInhalable Aerosol Sampler
Method of Patterning Nanoparticles
Audio Distributor “Sound-Go-Round”
uresFY02
ConnectionsConnectionsto the Market
9
As a graduate student in philosophy, Susan Dorr Goold had what she calls “a deep
scholarly interest” in theories of justice and the allocation of scarce resources.
Medical school intensified that interest, especially as it pertained to health care for the
uninsured. And so it was that in 1995, soon after joining the UM Medical Center faculty,
Dr. Goold linked up with like-minded colleagues to create an exercise in deliberative
democracy, “a method by which individuals could participate in health care planning and
rationing decisions.” The result of their efforts was Choosing Healthplans All Together™
(CHAT™), an education and research tool in the guise of a board game.
Today, Dr. Goold is director of the Medical School’s Bioethics Program, and CHAT
has been used for policymaking and research projects from North Carolina to California.
“CHAT addresses the major obstacles to individual participation in health care decisions,
things like apathy, intimidation, fear, and lack of access to information,” says Dr. Goold.
“By simplifying the technical aspects, making the process fun and enjoyable, and structuring discussions
among ‘players,’ the game increases awareness and stimulates grass-roots dialogue about the problem of
limited resources. It makes people aware that
insurance is a group product and that it’s important
to spread the risks and benefits.” She notes that
the game has broad applications for consumers,
researchers, employers, insurance companies, policy-
makers, medical service providers, and community-
based organizations.
CHAT continues to evolve. The board
game has been transformed into software, and a
web-based version is in the works. An inexpensive,
portable edition designed for educators (nicknamed
CHAT Lite™) is being used at Loyola University
and UM.
Dr. Goold is grateful to Tech Transfer for its
assistance with licensing and agreements. “Among
other things,” she says, “they worked to protect the
intellectual property so that, for instance, any data
collected will be available to researchers.” It’s likely
that, in the future, Tech Transfer could be involved
in licensing the game to an outside vendor.
CHAT
High-level pharmacy coverage? Long-termcare? Fertility treatments? Accupuncture? Dr. Susan Goold (pictured far left) spins thewheel in the game of CHAT where individualsdesign their own health care plans by choosingfrom multiple coverage options. Then, workingwith progressively larger groups, they come toagreement on a health care plan that reflects a consensus in values and priorities.
ChoosingHealthplansAll Together
In a birthing suite, a woman goes into labor. The nurse on duty quickly takes a vaginal swab, places it in a
syringe containing a small amount of buffer solution, and injects the liquid into a port on a small hand-held
instrument. Then, by pressing a single button, she triggers a fully automated DNA analysis. In less than 30
minutes, she’ll know whether or not the baby could be exposed to Grade B Streptococcus (GBS), a potentially
fatal pathogen—treatable if detected early—that’s carried by up to 20 percent of all new mothers.
Thanks to a start-up company known as HandyLab—and the breakthrough research findings of two
University of Michigan graduate students—this scenario is being repeated in pre-clinical trials at the UM
Medical Center and Baylor College of Medicine in Houston. Within the next three to five years, the same
on-site technology may be widely used for diagnosing a whole range of infectious and genetically-based diseases,
and for detecting airborne pathogens such as anthrax and smallpox.
The research that drives these remarkable nano-devices was developed over a period of seven years by
chemical engineering Ph.D. students Kalyan Handique and Sundaresh Brahmasandra and their faculty advisors,
Professors Dr. Mark Burns (Chemical Engineering) and Dr. David Burke (Human Genetics). In 1998, their
portable acid- and protein-based analysis systems earned a place on Science Magazine’s list of Top Inventions of
the Year. And in June of 2000, the two former students launched HandyLab with $2.4 million in funding.
In 2001, the company began seeking $3.5 million in Series B funding, and came away with $5.5 million
instead. “To be oversubscribed in this economy is quite an achievement,” notes HandyLab President and CEO
Michael Farmer. He points out that the company is
now receiving significant additional funding in the form
of Defense Department and NIH grants and R&D
contracts. Among HandyLab investors is the Wolverine
Venture Fund, administered by Michigan Business
School students.
“We're very pleased with the business relationship
we’ve had with the University of Michigan,” Farmer says,
adding that “Tech Transfer was absolutely crucial to the
start of the company. Without their contributions,
particularly in the areas of patent protection and business
planning, there wouldn’t be a HandyLab today.”
Developed by HandyLab,a hand-held sensor is
programmed to detectthe presence of common
viruses and bacterialinfections within 30 min-utes or less. Equipped
with the capabilities of a$400,000 laboratory, thedisposable cartridge will
cost only a few dollars tomanufacture and
the reader/analyzer will be comparable in cost
to low-end PDAs.
Handylab
Getting a Sense
of the Future
Described by its creators as a distributed, scalable,
non-intrusive network availabilitysolution, Peakflow™ enables
large enterprises and providersto detect and counter networkthreats, including denial of ser-
vice attacks. In 2001, ArborNetworks introduced a new
feature that gives Peakflow™the ability to detect worms
and viruses as they propagate through large
networks.
Security is a top concern for the operators of critical networks.
Government agencies, service providers and large enterprises all face
rapidly evolving threats such as denial of service (DoS) attacks, network
worms and attacks on the routing infrastructure itself.
According to Arbor Networks’ co-founder Dr. G. Robert Malan,
“Distributed threats cannot be effectively addressed with perimeter-
only solutions such as firewalls and intrusion detection systems.” That
fact helps to account for the phenomenal success of Arbor Networks’
flagship product, Peakflow™, a distributed network anomaly detection
system that had its start in the UM research lab of Dr. Farnam
Jahanian, professor of electrical engineering and computer science at
the College of Engineering, and the thesis work of Malan, his then-gradu-
ate student. Peakflow closes the gap between the detection of a threat and
its resolution, protecting the availability of critical networks.
In the late 1990s, Jahanian and Malan decided to create a com-
mercial version of their research prototype, originally devised to protect
UM’s educational network from DoS attacks. With funding from
Battery Ventures and Cisco Systems, they officially launched Arbor
Networks in February of 2001.
Today, Peakflow is being deployed by a broad range of govern-
ment agencies, leading service providers and corporations. The past
year was filled with milestones. Despite a generally weak economy,
Arbor Networks experienced solid growth and won key customer
accounts. In August, the company announced that it had
raised $22 million in Series B financing from top-tier ven-
ture capital firms and strategic investors. Most of the new
funding is earmarked for new product development.
Arbor Networks has also been recognized as one of
UPSIDE Magazine’s Hot 100 Private Companies in 2002,
Red Herring’s Ten to Watch 2001 and Network World’s Ten
Start-Ups to Watch in 2001.
Co-founders Jahanian and Malan are quick to acknowledge early
contributions made by the Office of Technology Transfer. “I credit
Tech Transfer with helping us move through the start-up process judi-
ciously and getting our technology to market quickly,” says Professor
Jahanian. “It would have taken us an additional six months otherwise,
and we would have missed important opportunities to raise money and
capture emerging markets.”
TheSweet
Flow of Success
ArborNetworks
11
In the late 1980s, signal processing specialist and UM Engineering Professor William J.
Williams (above right) received an unusual request from the Office of Naval Research.
Would he be willing to work with biologists at the Woods Hole Oceanographic Institute to
create a system for identifying the voice patterns of individual sperm whales? Intrigued, Dr.
Williams accepted the challenge and created a successful software program. It was some time
later that he learned of the real application for the technology: monitoring Soviet submarines.
According to Williams’ former student, Dr. Mitchell Rohde (above left), that story reflects
the core mission of Quantum Signal, a company founded by Williams and Rohde. “Our goal is
to take technology out of the ivory tower and bring it into the mainstream,” he says. “We do
that through consulting and education as well as through the development of core tools and tech-
nologies. The beauty of signal processing is that the systems we develop are cross-functional and
can be used to solve a huge array of problems.” As for example, he notes that an algorithm devel-
oped by Quantum Signal for identifying particular words in multiple-format documents is being
adapted for use in advanced security systems based on face recognition.
Williams and Rohde are the first to admit that, in the past, relatively few industries
realized the potential of signal processing, or understood how the math-based analysis of signals
and sensor data could solve their problems. But that’s changing quickly. In the past
three years, Quantum Signal has worked with clients in manufacturing, health care,
power generation, automotive design, and national security. Currently, their superb
track record in face recognition, speaker verification and similar biometrics technolo-
gies is generating favorable interest in industry and at the National Institute of
Science and Technology (NIST), which is reviewing one of their proposals.
“UM Tech Transfer has been a very good partner for us,” says Williams.
“They encouraged us to create a start-up company. They understand the needs of
a small business. They’re accommodating about technology licenses.” He pauses
for a second, then adds, “And they’ve always seemed genuinely interested in helping
us succeed.”
“We’re fundamentally an innovation
center. What we
do best is develop good
technology and license
it to organizations that have the
full-scale resources to deploy those
solutions.”
—Dr. William J. Williams,Quantum
Signal
Taking a Sound
Approach to Business
Quantum Signal
13
Acardiac patient steps onto a treadmill. The pace and incline periodically
increase until, finally, the patient is injected with a compound that traces
heart blood flow. Using a technology called SPECT tomographic imaging, a com-
puter then reconstructs and displays the patterns of heart blood flow and contrac-
tile function on a screen. These images, along with other data generated by the
same software program, will be used to assess the heart and make a diagnosis.
Back in the mid 1980s, when nuclear medicine tomography was in its
infancy, there was no way to quantify or display the inherently three-dimensional
information. Instead, researchers were forced to work with planar, 2-D images.
Nuclear cardiologist Dr. James Corbett and colleague Dr. Tracy Faber at the
University of Texas Southwestern Medical Center in Dallas created the first com-
mercially available computer application to generate quantitative 3-D displays of
heart blood flow and function. Approximately ten years later, Corbett joined forces
with UM colleague and research scientist Dr. Edward Ficaro to develop the next
generation of this software program, called 4D-MSPECT.
As Dr. Corbett explains, “4D-MSPECT grew out of clinical and research
needs for a tool to efficiently and realistically display and quantify gated tomo-
graphic studies of heart blood flow and mechanical function. In essence, we needed
a technology that would give us access to the wide range of diagnostic information
these studies can provide. We ultimately developed a sophisticated computer soft-
ware application for cardiac nuclear medicine image display and analysis.” Corbett
and Ficaro have con-
tinued to enhance
the software, inte-
grating new func-
tions such as auto-
matic report generation and exten-
sions to other imaging techniques
such as cardiac PET imaging.
Working with representatives
from Tech Transfer, Drs. Corbett
and Ficaro licensed 4D-MSPECT
to corporate giants such as General
Electric, Siemens and Philips.
“With assistance from the
University, we were able to obtain
FDA approval. We are now better
able to adapt, develop and extend
new technologies within a
constantly changing, increasingly
competitive environment.”
4D-MSPECTGetting to the Heart
of NewImaging
Technology
The sign on the glass door reads “LaunchPad.”
Step inside and you’ll find a large, light-filled
room where young business consultants are hard at
work—coaxing information from computer screens,
preparing reports, analyzing data, generating presenta-
tions, negotiating with vendors, scheduling meetings.
What makes this scene unusual is that these
particular consultants are actually University of Michigan
graduate students from the schools of business adminis-
tration, law, engineering, information, and education. They’re part of TechStart, a summer internship program
sponsored by UM Tech Transfer. And their clients are faculty entrepreneurs and local start-up firms.
Now in its third year of operation, TechStart is funded in part by UM’s Zell-Lurie Institute for Entrepreneurial
Studies and the Michigan Economic Development Corporation (MEDC). The program continues to win accolades
from both clients—who benefit from the students’ wide-ranging, latest-theory expertise—and the interns themselves,
who have a rare opportunity to apply their knowledge, hone their consulting skills, and get a firsthand, up-close look
at the world of high-tech entrepreneurship.
According to Mark Maynard, who manages TechStart, “The program is special because we recruit from across
the UM campus and look to build the most diverse group possible. In doing this, we create cross-functional, multi-
disciplinary teams that can understand both the cutting-edge science and the business climate for that technology.
It’s a powerful combination.”
VELCURA THERAPEUTICS: GROWING BONE BECOMES A GROWING BUSINESSThis past year, 10 student consultants—selected from an applicant pool of more than 100—worked on a wide range
of projects. One of the three-person teams was assigned to Velcura Therapeutics, a year-old start-
up company that won the 2001 Great Lakes Venture Quest Award and generated $3.3 million in
first-round funding from the state of Michigan. Located in Ann Arbor, the enterprise was spun
out of groundbreaking biotechnology—devised by Medical School faculty member Dr. Michael
W. Long—for growing human bone outside the body (ex vivo). Unlike other osteoporosis thera-
pies now on the market that inhibit further bone loss, Long’s discovery will lead to therapies that
actually stimulate bone growth.
Fueling Tech Transfer withBusiness Expertise TechStart
According to MBA student and TechStart consultant Andrew Corr, Velcura relied on the student
team “to move the company from a virtual to a physical operation.” That included everything from locating
and equipping an office to creating a business plan and venture capital proposals. TechStart consultants also
devoted considerable time to various kinds of research: providing a detailed analysis of the osteoporosis
market, evaluating vendors, and searching out prospective investors. They also assisted with patents and
disclosure agreements. Michael Krol, a UM law student with a Ph.D. in molecular and cellular biology, even
helped design and plan a bio-informatics structure for what will one day be Velcura’s large-scale commercial
labs. MBA student Jenny Kempenich researched potential strategic partnerships in Japan (where Velcura is
currently negotiating an agreement), and Pacific Rim countries, and provided advice on Japanese business
protocol.
“These are absolutely top-notch people,” said Long. “Their work was an important component in
launching the company this summer. We would have been hard-pressed to do it without them, and the
quality of their efforts was excellent.”
“Doing our job well means really understanding the
potential of our technologiesand fitting those to the needs
of our business partners”
—Tim FaleyDirector,
Technology Transfer and Commercialization–Engineering,
University of Michigan
THE PLAY PROJECT: KEY RESOURCES FOR A SERIOUS ENTERPRISEAnother group of TechStart consultants worked with Dr. Richard Soloman, asso-
ciate professor of Pediatrics. Soloman is the creator of an innovative and effective
therapy for autistic children known as The PLAY Project™. For
the past several years, he and his team have been teaching parents
throughout Michigan how to use the intensive play therapy at
home. Tech Transfer is assisting with legal and potential licensing
issues. Currently, the goal is to establish PLAY Project therapy
training centers throughout the region.
As a first step, the graduate student consultants met with
their “client,” Dr. Solomon, to evaluate needs and create a work
plan. “Our initial challenge,” says MBA student Jenny
Kempenich, “was to help determine their objectives and
find ways to align our services with their changing needs.”
After conducting extensive research on autism, the consult-
ing team developed alternative cost/revenue models, devised a
quality control strategy, and drafted terms and conditions for
PLAY Project therapy centers. According to TechStart consultant Ali Schriberg,
who will graduate next year with one of UM’s first joint degrees in business and
education, “One of our most important contributions was coming up with a
quality control strategy that included annual inspections, parent surveys and
other metrics for gauging quality and performance. As a next step, we’ll try to
replicate these same protocols for Michigan public school systems.” A therapy
center pilot program will be in place by the end of 2003.
“Smart, conscientious, persistent and professional,” is how Dr. Soloman
describes the TechStart team. “They discovered information on the prevalence
of autism that indicated a need for our services and raised important epidemio-
logic questions about the cause of the enormous increases in the state of
Michigan. The team moved our project forward immeasurably. An A+ job!”
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In 2002, UM Tech Transfer continued to play a leadership role in organizations dedicated to the
strengthening of the entrepreneurial infrastructure in Ann Arbor, and within the state of Michigan.
Here are a few examples of some of the programs and organizations which have benefitted from
these collaborations:
◗ Smart Zone/AcceleratorThis year the Ann Arbor /Ypsilanti area was designated
a Smart Zone by the Michigan Economic Development
Corporation (MEDC). This designation provides for state
support to establish resources to accelerate technology busi-
ness creation within the community. UM Tech Transfer
provided leadership for the planning of this proposal, and
will play a central role in fostering and receiving the bene-
fits of the resultant expanded entrepreneurial efforts.
◗ MichBioMichBio, a non-profit organization dedicated to driving
the growth of the life sciences industry in Michigan, has
played a highly visible role in improving the climate for
established and emerging biotechnology companies. UM
Tech Transfer representatives have taken leadership roles within
MichBio, participating in networking events, collaborating on
infrastructure development projects, and providing strategic
direction from the Board of Directors.
◗ Ann Arbor IT ZoneNow nearly three years old, the Ann Arbor IT Zone is recognized as a leading
provider of educational content in the areas of entrepreneurship and new busi-
ness development. UM Tech Transfer has provided board leadership and assisted
with several initiatives, including the Smart Zone program, in which the IT
Zone is the lead organization. In addition,
the IT Boot Camp is an innovative four-day
and four-night business development program
that has “kick-started” more than a dozen
new business ventures with the help of UM
planning, course delivery and mentoring.
Community
“Working with our communitypartners, we’ve made great
strides in creating an environment to support and foster our research
and tech transfer initiatives.”— Elaine Brock
Director,Office of
Technology Transfer and Corporate Research—Medical,
University of Michigan
“UM Tech Transfer has been a wonderful
partner for the community. From
early endeavors to start the
Ann Arbor IT Zone to more recent workwith the Smart Zone
Business AcceleratorProposal, they have shown the depth oftheir commitment.”
—Chuck Salley, Ann Arbor IT Zone
Partnerships
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◗ BioMed ExpoAs the founding member of this state-wide networking event, UM Tech Transfer
was a driving force in this premier annual showcase of leading-edge biomedical
research, education and commercialization. Now in its third year, the BioMed
Expo provides face-to-face interactions for hundreds of researchers, entrepreneurs
and service providers in an energy-charged setting with industry experts, service
providers and established and emerging companies.
◗ Ann Arbor Area Chamber of CommerceUM Tech Transfer assists with many of the programs of the Ann Arbor Area
Chamber of Commerce, including Agenda Ann Arbor, an annual conference
exploring the growth and future of our community, and Leadership Ann Arbor,
a year-long program introducing individuals to our town and institutions. The
University is also well represented on the Chamber Board of Directors.
◗ Michigan Universities Commercialization InitiativeUM Tech Transfer plays a leadership position in a collaboration with Michigan
State University, Wayne State University and the VanAndel Research Institute in
Grand Rapids. The Michigan Universities Commercialization Initiative (MUCI),
sponsored by the State of Michigan, is aimed at enriching and complementing the
resources and expertise of our collective technology transfer programs, and improving
the deployment of technology from Michigan institutions into our communities.
◗ Great Lakes Entrepreneur’s Quest (GLEQ)The GLEQ (formerly Great Lakes Venture Quest) is an annual
business plan competition designed to support technology
entrepreneurship in Michigan. UM Tech Transfer, along with
the Business School’s Zell-Lurie Institute for Entrepreneurial
Studies, played a leading role in founding the competition in
2000. UM fosters entrepreneurial activities from positions on
the GLEQ board as well as participation in educational events,
mentoring and resource assistance.
◗ UM Inventors Recognition ReceptionExpanding our traditional event for our
UM inventors, we focused on a theme
of “Celebrate Invention” to honor the
nearly 600 individuals who participated
in the Tech Transfer process. This
reception featured kiosks showcasing
examples of university research and
entrepreneurship, a guest speaker reflect-
ing on the life of Thomas Edison, and
participation by over 100 community
and business partners who paid tribute
to the inventors and the inventive spirit
at the University of Michigan.
“For entrepreneurs andinvestors, the ‘Celebrate
Invention’ event is a tremendous opportunity
to build and renew relationships with the
world-changing inventors at the UM. Events like this
will catalyze the next new venture from the UM labs
into the market place.“
—Kurt Riegger, VenturePartner, North Coast Technology Investors
FutureDirectionsAN OPTIMISTIC OUTLOOK
Thanks to an academic culture that fosters collaboration and encourages
interdisciplinary alliances, the University of Michigan is unique both in the
scope and quality of its research. Remarkable strength across disciplines has
created an environment ripe for invention in areas such as bioengineering, life
and health sciences, manufacturing, environmental science, and information
technology.
Looking ahead to the next year and the next decade, current research
holds great promise for advances in everything from environmental remediation
to public health and safety, and from heavy industry to nanomanufacturing. While it’s difficult to predict
where major breakthroughs may occur, we expect to see significant advances in fuel cell technology, cancer
research and proteomics.
FUEL CELL TECHNOLOGY
Hydrogen, considered the ultimate renewable fuel, can be efficiently converted into electricity by devices called
fuel cells. It is possible that hydrogen-based fuel cells, coupled with other power generation systems, could
replace gasoline, natural gas and other fossil fuel engines within a generation. Because of this, University of
Michigan researchers are focusing a number of research programs on hydrogen energy technologies in general,
and on fuel cells in particular. Much of this work is taking place within the College of Engineering. Research
activities also exist within the School of Natural Resources and Environment, the Business School and the
departments of Chemistry and Physics (LS&A).
Research is underway to develop more efficient catalysts and better reactor designs for hydrogen genera-
tion, improved methods for storing and utilizing hydrogen, and new micro-fuel cells for portable devices. The
successes to date are impressive—and the list is growing. Researchers from the College of Engineering are
developing high-performance fuel processing catalysts and novel micro-reactors. And in the summer of 2002,
the UM demonstrated its commitment to and leadership in hydrogen-based energy research by establishing
the Center for Advanced Research at Michigan on Alternative Energies or CARMAe. CARMAe is based with-
in the College of Engineering but will include personnel and projects from other UM units in its research/
education portfolio.
CANCER RESEARCH
The University of Michigan has established an impressive record of achievement and earned a place in the top tier
of the nation's cancer research centers. Among its numerous facilities is the General Clinical Research Center, the
largest and most widely utilized NIH-funded cancer facility of its kind.
A core strength of the University resides in the wide-ranging opportunities for interdisciplinary collabora-
tion. The interface of the Life Sciences Initiative (LSI) with the Medical Center and other units such as Biology,
Chemistry and Engineering is creating a research “gestalt” that rivals any other major
institution. Within this intellectually rich environment, where research projects run the
gamut from nano-devices to tissue engineering and submolecular explorations, the role
of Tech Transfer is to make connections between research and business, and to identify
new applications for discoveries.
Among its other plans for the near future, the University of Michigan recently
received a $3 million grant from the Michigan Life Sciences Corridor Fund (MLSCF)
for the Proteomics Alliance for Cancer project. This consortium will bring together
a broad array of researchers from inside and outside the university to advance the tech-
nology for comprehensively profiling human proteins for proof-of-concept experi-
ments aimed at the prevention, diagnosis, and treatment of cancer.
Initial research will focus on lung and breast cancer.
PROTEOMICS
The recently completed Human Genome Project
has generated vast amounts of information about
the fundamental structure of genes. Scientists are
now confronted with the challenge of determining
the functions of each gene. The key lies in pro-
teomics—the ability to identify and measure all
changes that occur in the proteins of a living cell
in response to its environment.
Today, the University of Michigan is poised
to become one of the world's premier centers for
proteomics research. The UM has assembled
outstanding researchers in a vast array of fields—
including genomics, molecular biology, and bioinformatics.
In addition, the new Life Sciences Institute will significantly
increase both the volume and pace of cross-disciplinary research.
Already, interdisciplinary teams are producing important, incremental
discoveries that could have a major impact on the future of genomic and
proteomic research.
19
“Overall, the prospects for technology transfer at the Universityof Michigan have never been better.
With a strong infrastructure inplace, with a notable record of
achievement and a growingnetwork of industry contacts, weare well positioned to help moveleading-edge research from theUniversity to the marketplace.”
—Marvin ParnesAssociate Vice President for
Research and Executive Director of Research Administration
University of Michigan TechTransfer
Office of Technology Transfer University of Michigan2071 Wolverine Tower3003 South State StreetAnn Arbor, MI 48109-1280Phone: (734) 763-0614Fax: (734) 936-1330
Satellite Offices:
Office of Technology Transfer and Corporate Research—Medical715 E. Huron StreetAnn Arbor, MI 48104Phone: (734) 763-6363Fax: (734) 615-0076
Office of Technology Transfer and Commercialization—Engineering143 Chrysler Center2121 Bonisteel BoulevardAnn Arbor, MI 48109-2092Phone: (734) 647-7080Fax: (734) 647-7075
Website:www.techtransfer.umich.eduEditor: Linda Fitzgerald
Contributing Editor: Mark Maynard
Designer: Kathleen Horn, University ofMichigan Marketing Communications
Project Manager: Cynthia Camburn,University of Michigan MarketingCommunications
Photography: Philip Dattilo, Per Kjeldsen, Marcia Ledford
The Regents of the UniversityDavid A. Brandon, Ann Arbor; Laurence B. Deitch,Bingham Farms; Daniel D. Horning, Grand Haven;Olivia P. Maynard, Goodrich; Rebecca McGowan, Ann Arbor; Andrea Fischer Newman, Ann Arbor; S. Martin Taylor, Grosse Pointe Farms; Katherine E.White, Ann Arbor; Mary Sue Coleman, ex officio
University of Michigan Nondiscrimination Policy NoticeThe University of Michigan, as an equal opportuni-ty/affirmative action employer, complies with allapplicable federal and state laws regarding non-discrimination and affirmative action, includingTitle IX of the Education Amendments of 1972and Section 504 of the Rehabilitation Act of 1973.The University of Michigan is committed to a poli-cy of non-discrimination and equal opportunity forall persons regardless of race, sex, color, religion, creed,national origin or ancestry, age, marital status, sexu-al orientation, disability, or Vietnam-era veteran status in employment, educational programs andactivities, and admissions. Inquiries or complaintsmay be addressed to the University’s Director ofAffirmative Action and Title IX/Section 504Coordinator, 4005 Wolverine Tower, Ann Arbor,Michigan 48109-1281, (734) 763-0235; TTY(734) 647-1388. For other University of Michiganinformation call: (734) 764-1817.
UM Tech Transfer Staff (left)
1. Mark Maynard2. John Cunningham3. Tim Faley4. Mike Sharer5. Mike Hallman6. Dennis Linder7. Mitch Goodkin8. Rick Brandon9. Brice Nelson
10. David Ritchie11. Janet Vandagriff12. Maria Sippola-Thiele13. Ken Nisbet
14. Robin Rasor15. Karen Studer-Rabeler16. Doug Hockstad17. Sally Ingalls18. Linda Hamlin19. Barbara Latham20. Jill Cooke21. Julie Condit22. Ruth Halsey23. John Kane24. Elaine Brock25. Sandra Moing26. Olga Furga
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